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call 1-888-577-5750 or visit tdd#: 1-800-345-2550 to open an account. tdd#: 1-800-345-2550 and learn how you can earn up to 300 commissi-free tdd#: 1-800-345-2550 online tdes for six months with qualifying net deposits. tdd#: 1-800-345-2550 our trading specialists are waiting to help you get started. tdd#: 1-800-345-2550 so call now. tdd#: 1-800-345-2550 lori: good afternoon, i'm lori rothman, the bull market, lpl on why he says the bull market can't get any respect. can't get no republic. why ignoring it could be a big mistake for all you investors. blackberry on the block. morningstar's call as the smart phone maker opening the door to a possible sale. asking about that, and faster than a speeding bullet, literally, musk expected to make an anownlsment today that could get you from new york to l.a. in just 45 minutes. suits up for the fall season? no time needed.
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the latest trend in women's fashion. that is the furthest thing from the power suits of the 1990s. back to the floor of the new york stock exchange to check in with adam. stocks off the lows of the day, but trending down. >> trending down, but it's a sideways/flat day, nothing going on with the dow, dow down 14 points, nasdaq's up, good news for apple up 2% on potential for the new iphone 5s sent 10th, but the other thing people are watching down here, dole foods, talk about that. their ceo is going to buy the company, upped the bid for it, and their stock today up 5% trading at $13.45, there it is, year to date, up 17%, so dole on a run today. they are doing well. back to you, lori. lori: one not talked about recently. thanks for that, adam. >> yep. lori: what are the markets and
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zombies have in common? more than you think. the chief market strategist says this bull market is the walking dead. it is unkillble. jeff, thank you, as always, for joining us. let's start there. why are you optimistic right now? >> the target right now, gosh, look at the comparisons, commodities are not in great shape, bond market continues to suffer through a fairly long bear market, and stocks are good. evaluations are attractive here, and earnings growth, well, not stellar, likely to improve as the economy picks up in the coming quarters so stocks are the best praise for the dollar. lori: fair just to characterize them as the best of the worst? there was a big "wall street journal" article that caught traction largely to blame for the dragging seen in the equity market last week that, in fact, stocks have become overvalued, the s&p forward pe is a four-year high, and perhaps that might send investors to the
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exits. >> that's right. bull markets do not end in a price earnings ratio of 16 where we are today. they all ended, at least since world war ii, between 17 and 18, still a good ways from here op the back of further earnings growth. we're not at the peak of the bull market cycle yet. that's a few years away, and it's a still a few years away of gains. back to the last time we saw a market this strong, this far into the year, it was 1967, the summer of love, last time we had gains this strong, and there's similarities, weak gdp growth, earnings growth, not strong, and bond yields rising. we still managed to put further gains on in the second half of 1967. i think we will begin this year. lori: average risk investor, average investor, you should -- are you recommending realoe -- reallocating towards the equity market? >> i think you should be close to whatever your long term target is, individual investors stayeded away from stocks for so
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long, lori, favoring bonds over stocks for the last four or five year, and it's time to rethink it, get back, and move back into equities, and when you think about it, you know, where the buyings come this year is from the companies themselves and not individual investors, bying the buyers, meaning, buying the shares benefiting from share buy backs seem to be the best strategy. this year, the s&p 500 buy backs index up # 32%. i think that might continue. that, i think, is a much better bet than the bond market. lori: interesting advice. follow the insiders. jeff, it sounds, you're bullish, but i have to bring in the question of the feds and taper talk. is the economy and market equippedded to handle that? >> oh, they'll likely will volatility. i don't mean to suggest there's not pullbacks along the way here. i think we will. i think the economy, however, is well-braced, and even the markets for what may ultimately be a tapering come september. when qe1 and qe2 ended, last two
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bond buying programs from the fed, bond yields fell, fell 1.5% because the economy was not ready to hand it. this year, they rose in may and june and stable in july and august, a sign we're ready. lori: right, but remember may, jeff, when just the take of tapering, and we saw the initial leg up for markets selling up. when it happens, when the fed executes tapering, i know you said there's volatility, but i don't know if everyone agrees with you it's priced in. >> yeah, probably don't all agree with me on that. i don't know every penny of the price, and certainly further along in the transmission mechanism of getting messages into the markets from the fed. you can't name a fed official who has not said it's coming later this year, so the market's been well warned that it's on its way, but you're right, there's jitters when it comes into place. that may be a great opportunity to add exposure if you have not
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already. lori: great advice. thank you for following up with us. talking commodities, metals regain the shine. fox business contributor, phil flynn joining us. great to see you. gold jumping 2 # #%. >> they are going crazy. i don't know what they are doing, but their demand is up 54% from last year. people are surprised to hear that, lori because gold goes down so much you wouldn't think demand on the physical side was strong. it is a sign it's extremely strong, and if not for the fact that india clamped on the buying, wet them them go up higher. yesterday, we taked about it, held the levels, and right now, silver's up 93 cents, exploding up. on top of this, with all
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enthusiasm about china and strong demand, it would be driving up the oil prices with it. it is. not as much as you think. oil prices were lower. they have turned higher, and they turned higher on concerns about supply issues. the supplies are cut off from the strike, and as well as north sea production problems bringing up the oil. back to you. lori: thanks so much. amazing to see the $23 move in gold today. following up with you throughout the afternoon. thank you, sir. >> thank you. lori: another huge mover in today's session is blackberry announcing they are exploring options including a sale. is that the best option? joining us, brian, morn jr. stan analyst, thank you so much, sir, for joining us. it's worth to question, even though shares of blackberry are higher today, is this move too little too late for the maker? >> >> i think it is, too late
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for quite some time. the base case is they sell a modest amount of phones, gain market share selling into certain countries, retaining the customers, and that's it. today's news does not change that view point. they might have more time to try to make a turn around, but they have a niche player so maybe 25 million units a year, but nowhere near the scale of the apple or android, and don't get back to market dome in this case. lori: interesting. in the market of splart phone saturation, can you say what they offer the customers that the other competitors, other smart phone makers do not? >> sure, they have the most security networks. what we've seen with blackberry's decline, is many don't care, using other methods for iphones and samsungs into the mix as well. other companies improved there, and in other countries of the
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world, the blackberry brand has better recognition than the u.s.. the u.s. fell off dramatically, and sales held up better, less of a decline in canada, u.k., middle east, and when blackberry launched 10 to begin with, they focused on those countries first. it's no longer a u.s. story. it's other places in the world where they can hold on. lori: blackberry, focus on the smart phone, but the technology is impressive, wireless networks patents, operating system itself, those are valuable assets. >> we agree. certainly, maybe the most valuable thing is $6 a share of hands on cash. there is value in the company. makes sense from a private investor perspective showing how little chance there is for blackberry to really reemerge as a dominant smart phone player, the development is great, but not support behind it for traction. they sold 2.7 million units last
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quarter in a launch quarter. that was disappointing. they just don't have the scale at this point to get back to the top of the food chain, so they will try to carve their image and hold on best they can. there are assets around it. lori: talk about the structure. we know that sill leer lake; right, the private equity firm approaches blackberry about going private. is that a deal? what makes sense? what buyer or partnership if you will. what do you think, ryan, what's the best course of action here? >> surement i think private equity makes the most sense. we are skeptical of outside parties coming in. the party is a source of pride for the canadian government. they want to keep patents within the country a chinese buyer a difficult. microsoft, google, have strategies, and it makes the most sense for a potential buyer. lori: the price target is ten
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and a half bucks a share right now? >> nine a share, and not changing that based on the news. lori: thank you for your time. >> thank you. lori: we want to bring you breaking news in regard to sac capital, reporting the hedge fund has closed the stock trading unit parameter capital management. now, parameter, managed money for sac since 2010. all of this comes on the heels of the "wall street journal" report the firm is bracing for outside investors to pull all remaining funds, all the money out of the fund following this criminal indictment against the firm that happened last month. the "wall street journal" says there's roughly $1 billion left that's not already marked for withdrawal. friday, by the way, is the next deadline for clients to say whether or not they want to pull their money. other stories making news now? the battle in the jcpenney room heating up deciding whether to
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take action against bill akman, the company's largest shareholder, the move in response to the release of confidential deliberations last week. the shares edging lower on the news. prepare for the new iphone, apple turning the wheels. the tech giant hosting an event on september 10th, one year to the day after unvailing the first iphone 5. this launch could be crucial for apple which lost market share to samsung and other android devices. invvstors are liking the news. look at shares of apple, gaining more than 12 bucks or over 2 #% in trading action on the day. jumping into today's action, back to the new york stock exchange to learn why. call it divine, intervention, not happy idea of larry summers being the next federal reserve chairman. tell you more on that as well. in this economic recovery, who
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stands to benefit the most? trucks or trains? the bull versus bear, actually, it's called bull versus bull faceoff over the best bet. there's more ahead. ♪
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>> exclusive reporting from fox business senior correspondent for you. the federal reserve chairman, ben bernanke, is asking do delay the deposition in the green brerg aig lawsuit scheduled for friday. now, it's unclear why the request was made, but no new date has been set. last month, the judge ruled that the federal reserve chairman should testify in the lawsuit by hank against the u.s. over the ensure's 2008 bailout saying he was a central figure in the decision to bail out aig. as we do every 15 minutes, updating you on the stock market. adam, clearly, not by my side dead today, but on assignment. what's behind the move? >> shares jumping, an upgrade to a buy and price target of $280 a
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share, but right now, there's another 52 #-week high at 242 a share, not there at this moment, 241.65 is the current trait, but they are up 3% for the day, and here's one thing you keep in mind, that needham upgrade, there's unexploited growth opportunities, specially mobile advertising. lori: thank you, adam. time to make money. let's make money with charles payne. this hour, looking at a stock whose shares rise on the heels of the upgrade. what's that, sir? >> that's sf networks, the networking stocks, around for a long time, looking really, really good. you know, i forget the firm that upgraded this morning, but i wanted to do this this morning, but we didn't have the time. recently, the street's moving the earnings estimate up, a week ago, at #5.40. this week, probably a tech
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conference tomorrow, august 28th, september 3rd, a citi group thing, as conferences go on, there could be more information and news from the company. lori: you love conferences. you think they are catalyst. >> amazing catalysts. you know, ever since some of these things came out, you know, this has been sort of the platform. the platforms for the companies come out and sort of give themselves a boost to share with the world what they do, whereas a long time ago, it was just a call to a couple hand picked guys on the street. the pipeline is strong, pipeline is strong, and earnings look good, belter than year over year, so there's got momentum. looking at a close at 9 is #. from -- 91 #, from there, it's 107. lori: elbow room. the magic voice in my head says it was barclays today. >> right. you can see this stock even, you know, because barclays is not necessarily a heavy weight with tech names burks it's beaten down name, people wanting stocks
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not trading at all-time highs. this fits the bills in many ways. once it gets going in either direction, hard to stop it. lori: thanks, charles. >> see you later. lori: scary pictures as another sink hole swallows condos a few miles from disney world. the latest from fox news next. it is something you really have to see to believe, and you're not going to see it anywhere else other than in this fox business exclusive. traveling from new york to los angeles in just 45 minutes. show you how. ♪ ♪
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and 900 million dollars are changing hands online. that's why hp built a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. this&igonna be big. hp moonshot. it's time to build a better enterprise. together. always go the extra mile. to treat my low testosterone, i did my research. my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal axiron is not for use in women or anyone younger than 18men. or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact ere axiron is applied as uneected signs of puberty in children or changes in body hair report these symptoms to your doctor. or increased acne in women may occur. tell your doctor about all medical conditions and meditions.
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>> at 23 minutes past the hour, this is your fox news minute. witnesses say they heard a cracking sounds as part of the central florida resort collapsed last night due to a sink hole. fire official says 30% of the three-story structure at summer bay resort collapsed forcing evacuation. no injuries reported. authorities charged a man with murder and kidnapping following a double homicide in the state that led to a nationwide search for a missing toddler. two women shot to death yesterday in a home in johnston, and the 2-year-old son of one of
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the women was unharmed wondering in a housing project. the suspect is being held without bail. jurors in the racketeering trial of james "whitey" bulger in the fifth day of deliberations deciding if he's guilty of involvement in 19 murders and other crimes. those are your news headlines on the fox business network. now back to lori. lori: lauren, many thanks. better news for drivers here. relief at the pump. gas prices falling six cents in the last week according to aaa. a gallon of regular gas hit $3.55, down from $3.of -- 3.61 a year -- week ago. no gas needed for hyperloop travel. heard of that? after tackling electric cars and space, tesla ceo is now taking on high speed travel, and jo is
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in loveland, colorado with the exclusive look at the technology ahead of the announcement. >> we are here in loveland, colorado with a fox business exclusive. basically, what's happening here is elan is revealing now at a later time, 4:30 eastern, a very exciting hyperloop high speed technology. look at the tweet, just got out, worked all night, hopes there's no mistakes and delayed the announcement until 4:30 eastern time, which is 2:30 here in colorado, but what we're here to do is actually talk to you about what the technology is, and i'm here with darrell, the ceo and head of et3 # #. your company, darrell, has met with elan musk, developed the technology for more than a decade. now, tell me where you guys are in terms of developing the high speed tube transit. it's happening so we can, you know, go for a ride. >> yes, we are ready right now to take what we learned, but with over a dozen years of
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research in this field, taking what we learned from the prototypes we built, ng models that we built, and this mockup that we built, putting it all together in a three mile demo that will showcase all of the elements necessary to operate at 37 # 5 miles per hour -- 375 miles per hour on statewide basis and network it like cars op a freeway. >> this is interesting because you guys are privately held company, but you have over 270 # companies participating in your con consortium in how many countries? >> 20 nations. >> amazing. this is the model; right? this is what we climb into. can we have a seat? >> sure. >> all right, let's go. we're getting into this tube transport. this green would be inside what you call a capsule; right? >> correct. this is the inside capsule, and when it slides back, we're in here in a car-sized vehicle,
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about the size of a business jet without the wings, and much more comfortable than a car that, you know, nobody has this much leg room or comfort. it's ultra comfort for four to six people. >> what's interesting here quickly is you guys collaborate with chinese companies doing the same thing. what's the competition like? summarize. >> we -- et3 system is a chinese technology called high temperature superconductor mag lift implemented in china, and about 20 of our -- the patents in the ip portfolio are from professor wong at southwest university who has designed this car-sized magnetically lev at a timed vehicle that operated and up heard of outside of china. >> you cooperate with all the companies, a great potential for job growth here, and, certainly, we could see this technology
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tested any time within the next year depending on how the permits go in the states where you want to test it out, but fox business is ready for the ride. thanks so much for the exclusive. we'll be back with you in a while. back to you. >> thank you. lori: great stuff, leg room is wonderful, but 45 minutes from new york to l.a.? if that's possible, i don't care how uncomfortable, that's a short period of time. see you this afternoon. is the short list to replace ben bernanke about to get a whole lot longer? the new names floated about next. investing in a long haul, trucks against trains, the bulls face off in a battle over your portfolio. they each make a case next. ♪ [ male announcer ] if you're taking multiple medications,
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today, we're ready for whaver swims our way. ask youdoctor aut symbicort. i got my first prescription free. call or cck to learn more. [ male announcer ] if you n't afrd your medication, astrazeneca may be ab to help. lori: time for stocks now. as we do every 15 minutes let's head to the florida of the new york stock exchange and our own adam shapiro. you're watching one big loser. >> i wouldn't call it that big of a loser when you consider the stock is up here 5%. look at cisco. if you go out you will encounter cisco. they're off from the friday close about 5%. part of it has to do with the earnings report we got. they missed on earnings per share. revenue was up. they're paying more for dairy products that's a problem. paying more for poultry for chicken. gross margin came back a little. that is not what investors like to hear, lori. lori: adam, thank you very much. janet yellen and larry summers remain the president's top
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candidates to replace federal reserve chairman ben bernanke next january. donald cohn is also being considered. there is speculation of a mystery candidate on the list as well. peter barnes is live in washington, d.c. with this angle of the story. peter. >> that's right, lori. at his press conference on friday he talked about larry summers and janet yellen as his top candidates. he was considering a couple other candidates which piqued everyone's interest. sources have confirmed the president is considering another former fed vice-chair, don kohn. who is the fourth candidate? the white house won't comment by former fed economist, took a crack at it. like other fed-watchers he think's another former vice-chair of the fed, roger ferguson, head of tiaa cref. and stanley fischer, former head governor who heads the central bank of israel. alan blinder, princeton professor. a former vice-chair could be on
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the list and long with current fed governor jeremy stein. he thinks summers is the frontrunner. summers faces opposition from some democrats in the senate. >> everybody is trying to assess how strong of an opposition there is and if it is worth making a fight with potential, with allies in order to push his confirmation through. i think, i think that's wherr we are. i think whether or not he nominates him depends what happens the next few weeks and how the discussions proceed. >> okay. online bookmaker, patty is making odds on the race for fed chairman. right now summers as the favorite with a one in two chance of getting nominated. he is followed by yellen and ferguson and former tresh-- second tray of treasury tim geithner who said he doesn't
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want the job. bet midder is saying tweeting against summers. argue of bank deregulation and turned bankers into pimps may be the next fed head. summers, lori. back to you. lori: good for you, spicy, bette midler. made a career out of that kind of talk i suppose many would say. vegas odds kind of interesting to follow it up. peter barnes, thank you, sir. >> you bet. lori: transportation stocks are beating out the broader market more than 5% this year but right now it is all about rails versus trucks. which stands to benefit the most from a economic recovery? we're putting a railroad bull against talk interesting bull to see which sector has the better shot to make you money in the long haul. our railroad bull, donald bratton. trucking bull is bank of america senior research analyst, ken hector. welcome to you both. ken, to you first. you say you're a buyer of trucks
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right now. why is that? >> given the trucker survey we're seeing sent mane improve after a little bit of a lull in the spring. lori: what is driving activity? is there broader growth or is there specifics? >> it is probably broader growth given our shipper survey goes naicswide and good for rails and trucks and economic activity and that is good for volumes and volumes drive what is going on with the stocks. lori: don, bring you into the conversation. you have underperform rating on the trucking industry. why is that? >> i do for one basic reason, that is, as much as i love the trucking industry right now they're in a position where their cost inflation is running five to 7% and their pricing power is running roughly two to three at best%. when your costs are going up at a base two or three times past your pricing power your margins will see real pressure. lori: that is worth a mention to remind everyone, everyone knows how huge industry railroad is
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versus trucking. practically doubles size of the trucking industry. when you look at the sectors from an investment perspective, can you actually say, go trucking over, under, underweight railroad? it is not as simple as that, is it? >> that's a great question. while railroad stocks are larger, trucking industry is much larger. 70% of all the freight is moved by trucks. 15% is moved by rail. you have more trucks moving more freight so that the top 10 companies that are actually public are only 7% of the market. lori: wow, 7% of the market. >> yeah, yeah. so the ones we actually like are focused as don mentioned on cutting costs. >> those are, i know you sent along, swift, arkansas, best, conway, some of the trucking stock picks? >> swift is doing great job cutting costs. became republic a few years ago and done a great job cutting down costs and debt and that's what we're focused on. lori: don, weigh in here on railroad names you see the most
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growth? >> i see most of the opportunity those invested in fracking ain't intermodal. canadian pacific con continues to be the favorite name. big fan of hundreder harrison, ceo. got to know him when he ran illinois central. continued to be fans of his when he ran canadian national. we know what he is camable of producing results at canadian pacific. we're looking for large cap company to more than double its earnings in the 2012 and 2015 time frame. i don't think you can find many large cap industrials much less large cap stocks period capable of doing that kind of performance. lori: you mentioned intermodals, don, can you explain to me what that means exactly. >> sure. intermodal, being intermode. in the case of another one of our recommendations, j.b. hunt, they're picking up the trailer of goods as a truck. taking that trailer or container to the railroad, the nearest rail yard. the railroad makes it move the
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vast preponderance of distance. when it gets close to destination, j.b. hunt, goes back out and takes it the last mile. lori: gotcha. >> so as a result you get big fuel savings, cost savings and much more competitive. lori: begs the question if intermodal is such a great growth area for railroad, does it impact, that loss of that type of business, intermodals affect trucking side of things? >> certainly. when you talk about 70% of your freight being trucking, if you lose a little bit of lost volume from the trucks that is a big percentage gain for railroads. that is great growth area for railroads. the trucks we're talking about a small subset of trucking market that is public. those are cutting costs the stocks we're focused on. lori: dow transports which encompasses all the transportation industries oven considered a leading indepent can tore how the economy would fair. you might have a front row seat. don what are the prospects of growth for the balance of the
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year. >> we're seeing better prospects for growth but we think we're essentially in a slow growth, no growth type of economy with three basic exceptions. fracking and anything related to fracking. the intermodal shift we just talked about and e-commerce. i like to take one small little addendum to what ken said. the problem right now with intermodal gaining market share it is gaining market share in that under 55-mile length of haul. if you look where all the truck freight is, the shorter and shorter links of haul you get to the more and more freight that's available. when intermodal was stealing market share in the 1,000, 1500-mile link of haul it didn't matter much to trucks. but now we're getting 500 to 600-mile length of haul there. are many as hauls in lent of haul in the 500 to 600 length of haul for trucking as 1,000, to 2,000-mile lent of haul for trucking. when diesel goes up a bit it take as big bite out of trucking market share and as a result good for j.b. hunts of world and
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intermodal play years i have to get one more question in. we're covering story out of colorado about elon musk and latest investment in transportation, hyper tube. new york to l.a., 45 minutes. do you think it could take a bite out of traditional transportation modes? >> just like the freight wants to go faster mode, when you talk rails versus trucking and cheaper mode you look for the same thing on passengers. they will try to find a way to move faster and cheaper any way they can. lori: exciting right? >> yeah. lori: thank you, gentlemen. >> thank you. lori: fallout down on the farm. reaction to today's crop report as corn prices claw back. looking for prime seats to the next game or concert? we have just the ticket. live nation and ticketmaster are looking to get in on the resell business but will scalpers go for it? ♪ [ indistinct shouting ]
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>> i'm cheryl casone with your fox business brief. dole food company and ceo david murdock have announced they reached a deal for murdoch to take the company private in a $1.2 billion deal. the $13.50 a share takeover price for the fruit and vegetable producer will require approval by holders of majority of shares other than murdock. campbell's soup entered into final negotiations with vcv
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capital partners for the sale of its european business the proposed deal with the a global private equity firm includes campbell's brands of soup, sauces simple meals which have $530 million a year in net sales in europe. rockwell collins is buying aerospace communication unit of carlisle grouplion t combines air, inc. network with rockwell collins avionics and cabin technologies that it bought back in '07. that's latest from fox business, giving you the power to prosper.
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lori: you know this by now. as we do every 15 minutes let's check markets. adam shapiro on floor of the new york stock exchange. seen a lot of you with a busy day. how was the weekend? did you watch "true blood" last night. >> i watched "true blood." i'm waiting for season finale. how is hbo doing by the way? we crossed the zero line 40
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times today. trying to find direction what will happen with the dow. we are down 16 points. earlier in the day we were up. no huge swings. not a remarkable day. one thing traders are talking about retail investors poured 92 billiondollars year-to-date in mutual fund. last time we saw an amount that large into equities, in 2007. we know how that ended. back to you. lori: don't stoke a mass run for the exits, adam. don't get everybody too alarmed. come back to my, will you. >> i'll be there tomorrow. lori: corn futures coming back after the the usda forecast cut the harvest for next year. jeff flock on the farm. >> got my boots on, lori. this is one of the reasons the report said what it did. that didn't look like much after ear, does it. that is what what the worldwide demand estimates said the
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harvest would not be as good as they thought. i have clayton castille and friend back in this row. looking at your corn. clayton, i can see you here. they said it is not as good as we thought. do you buy that? >> oh, yeah. crop was planted late. we're lacking moisture and lacking growing degree units. the crop -- >> friend from your seed company, new tech. you planted seed that was drought resistant this year. haven't needed that so much. >> not so much. last year it did shine real well and performed super for us. we thought we would give a shot. >> peel that one back real quick. see what it looks like. i want to show what you things like leak at this stage of the growing season. that is pretty decent. filling out. >> we have nice looking ears of corn. they need some heat to complete the filling and, go on from there. >> clayton, appreciate it. , very much. that is the sense down on the farm. traders like it because this is very bullish corn. a big bump up in price.
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corn, beans and wheat. >> still sad to look at the weak-looking ears. >> yeah. >> the market what it is. >> still selling. lori: thank you very much, jeff. signs of life on mars. the out of this world number of people signing up to establish a human colony there. the women's power suits back in action, believe it or not? minus the shoulder pad. you can relax. late '80s legend updated now for the fall. plus retail names ready to capitalize next. ♪ any last requests mr. baldwin?
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do you mind grabbing my phone and opening the capital one purchase eraser? i need to redeem some venture miles before my demise. okay. it's easy to erase any recent travel expense i want. just pick that flight right there. mmm hmmm. give it a few taps,'s taken care of. this is pretty easy, and i see it works on hotels too. you bet. now if you like that, press the red button on top. ♪ how did he not see that coming? what's in your wallet?
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♪ >> thank you, cynthia.
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>> hold all calls. >> yes, cynthia. lori: that was classic 1998 firm, working girl. think it is older than that, think it is 88. been 20 years since the demise of the power suit that the movie so beautifully highlighted. believe it or not the power suit is back. being styled in a whole new way. npd chief industry analyst marshal cohen joins us over the phone and how the power suit changed its way and how it found itself back into the office. marshall, pleasure. why is the power suit coming back now if. >> when you think about what is going on, the h being able to separate yourself from the competition. younger generation, very second savvy compared to the mid sector market. the mid sector says we have to dress for success. we have to look like we know what we're doing even though we can't operate a be tablet or
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smartphone. the younger generation is trying to separate from themselves. they're trying to show that they're not only tech-savvy but with the next to the person at same age this is for -- lori: sorry to interrupt you. they updated. big bulky shoulder pads are out, correct. >> this is all about looking almost like part of your casual wardrobe. it is about suit separates. go in and buy it have it fit off the rack. not "annie hall" look that is big and oversized. this is slim and trim. making you look healthy and fit. it is about convenience. go in and get the perfect power outfit. walk right out. no alterations needed. >> swimsuits sales are up actually% over last month, marshall. what is likelihood in the overall weaker economy that the clothing manufacturers just ran out of ideas? they were desperate to find something that is a no-brainer and be able to knock it out of the park? >> the funny thing about fashion they never run out of ideas
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because all they do is recycle the old ones an put a new twist from it. is the suit new? obviously we know it is not but younger generation think of themselves discovering a suit. their moms of this current crop of people entering into the workforce they didn't have moms who wore suits. lori: that's interesting. >> this is indcool new for them. lori: what you're saying the younger generation, tech-savvy individuals, women in particular are gravitating and snapping up not matching, matching suits but new breed of power suits having never seen movies like working girl or late '80's big shoulder pad, wide lapel suits, correct. >> saksly correct. they haven't lived that lifestyle. they are doing research and they have the internet as a tool to look back in time to figure out how to adjust it from the designer sign and make it something a consumer would wear. lori: gucci, armani, original female power suit. who is doing it now and can i get it at a reasonable price?
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>> you can. go to places like j. crew and ann taylor you can get some affordable product that is there. lori: do you like them? when you see a woman wearing a new power suit. >> when it is done right it looks great. there is another element. they're doing dress up on the top just like guys are doing, wearing jackets with jeans. there is a way to dress this up so you make yourself look like you're wearing a suit without looking like you just bought it because it was matching matching. lori: walking through the streets of manhattan you see a lost accessories with very neutral palate clothes, right? that's also very -- >> the key to this look at this business and recognize who else is going to prosper from it. the accessories that go with the power suit are going to be a huge opportunity for footwear and for the accessory market. as well as some of the affordable suit manufacturers and retail years let's face it, marshal. you can ditch the spanks. for most that is all it takes. >> pleasure. lori: mars, mysterious,
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alluring, not to mention deadly. that is not stopping 100,000 people from applying to be the first humans to take the one-way trip to the red planet. dubbed the mars 1 project, the program hopes to establish a human colony by 2023. that is write with risk, of course, inexcluding lethal radiation, deadly solar waves and not to mention the 6 million-dollar price tag. mars 1 will accept 40 candidates but only four individuals will get to travel to mars. coming up shares of hd supply hitting a 52-week high after jeff hoff wrought about the cop in "barron's." he tells tracy byrnes and ashley webster why it could go higher. stay with us, folks. right now, 7 years of music is being streamed.
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tracy: welcome back. i'm tracy byrnes. ashley: i'm ashley webster.
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what's next for blackberry? it already tried, new products, a new ceo, even a new name but the smartphone maker says it could even more drastic action including a sale. the stock its surging. we'll have the very latest ahead. tracy: five weeks away from a sent taper. deutsche bank's carl ridon u.s. said the fed has done too much to turn back now. how it will all play out ahead. ashley: detroit to beijing, two thundershowers flat. new technology could make the world much smaller. we're life in a fox business exclusive. like l.a. to new york in 40 minutes. breaking news on the monthly budget deficit. let's get straight to it and go to peter barnes in washington. peter? >> hey, ashley, deficit was $90 billion in july. 40% increase from the $70 billion deficit reported in july of 2012, but, for the fiscal year-to-date, the deficit is actually down by about that
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amount. it clocked in for the first 10 months of the fiscal year-ending july at $607 billion. that compares to $974 billion for the deficit for the same period last year. and, of course, this improvement in the deficit, is due to those higher tax increases that kicked in january 1st. higher payroll taxes as well as higher taxes on the wealthier earners. and lower spending here in washington caused by those sequester spending cuts. we have two more months left in the fiscal year and two more months in that fight before the next round of, the next round in the debt, increasing the debt ceiling. ashley, back to you. ashley: so many, peter, mind boggling, isn't it. peter, thank you very much. tracy: higher taxes that's all i heard. time for stocks. we go down to adam shapiro on the floor of the new york stock exchange. adam, the dow is down 38 points.
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what is going on? >> let's not talk about being down. let's talk about stocks getting a boost. the dow is down 7 points. s&p is down. apple, we'll talk about apple in a second. i want to talk about blackberry first. there was that big announcement that came as no surprise, late that blackberry was considering they would go private. today we found out they explored a -- formed ad committee to explore strategic partnerships and explore a sale, or break the company apart. patents than the market cap right now. shares are up 8%. trading $10.52 that is a good turn around for blackberry. no confirmation but you know how the story goes. time for an up grade expected september/10. apple shares are trading, $446. apple shares are up 2% today. back to you. tracy: adam thank you very much. lizzie mack will have more on
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the whole blackberry issue coming up in a few minutes. ashley: very good. the dow and s&p kicking off the week in a red and all a little mixed. that is good news for my next guest, because he is buying on the dips. we have the chief investment officer more with why he is overweight equities. steven, thank you for joining us. you're pretty bullish aren't you, despite all the record highs we seem to be hitting. yes we're drifting in this august doldrums if you like but overall you're still very bullish. why? >> we are. we think they're transitioning to a new phase of the secular bull market, the first four years the world is not ending tomorrow. that figured that out to drive the multiple up. the next surprise that growth actually returns. we think growth over the next 12 to 18 months will be surprisingly strong in the u.s. and okay worldwide and that will drive through to earnings and we think the market goes significantly higher. ashley: but we've never really
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seen a period in history where we've seen so much fiscal an monetary intervention that we've seen so the history books can go out the window. isn't it very difficult to predict both in the long term and short term where we're headed? >> it's a tricky business. that is what we're paid to do, ashley. ashley: fair enough. with that in mind you like the growth prospects, and what sectors do you like in any particular companies? >> we like companies levered to the surprise on top line. more cyclical in nature. we like financials. they have broad exposure to the real estate market and to the stock market.% we like housing-related stocks. we like industrials. we like technology. so, areas that can benefit from an economic up tick. ashley: do you refer stocks that are more u.s.-centric, if you like because the global economy has been so iffy? >> we're still overweight u.s., ashley. we think that is probably the thing that's leading the way but i don't think you can ignore the valuaaion that's emerging right now in europe.
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japan we like accelerating. for people with a little bit of patience, emerging markets are as cheap as they have been in a long time righh now. ashley: any in particular that you like on emerging side? >> on emerging side we're looking at correia. -- korea. wee think that is interesting. brazil, china, to a certainty extent. ashley: china is difficult. looks like they pushed the reset button. you mentioned the sectors. you like fortune brand as a derivative housing play? >> we like the housing space. we think housing starts will double over again. ashley: even with rising interest rates? >> look, housing has done traditionally very well with 4 to 5% 10-year bond yields. we think that's where we're heading on the 10-year but we think the underlying dynamics in house something quite good. we haven't invested in the sector for five or six years. we like to play the derivative plays. i like to call them the arms dealer. fortune brands is an armses dealer in housing.
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it has come off 10% on concerns about the fed. we think it's a great entry opportunity. ashley: on financial side, jpmorgan, why that particular? >> we think it is sort after winners losers game in finance. jpmorgan picked up a lost assets, you know, in the financial downturn. they have a much bigger footprint today to grow their earnings than they had in the previous, the previous cycle. ashley: right. >> we think they probably lead the market higher. ashley: very good. very quickly, target for s&p by year's end? >> we've been at 1660 for a while so we think we're around there. but probably get to 2,000 by the end of 2014. ashley: oh, that is bullish. stephen ault. thanks for being here. >> thank you, ashley. ashley: thank you. tracy: we can only hope that's true. ashley: end of next year, 2000? why not. tracy: blackberry could be headed for a break much the board of the struggling smartphone maker announced its board formed a special committee to explore strategic alternatives.
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so what the heck are their options? liz mack here with the details. >> this is developing story we're on throughout the day. the odds they could do a dell-style deal where they get leveraged buyout or go private is increasingly slim because they have a high cash burn and deepening subscriber losses. basically governments around the world, including the united states like the blackberry for its security. that is what it has going for it. so the focus now, what we're hearing in terms of the wall street analysts and traders, handicapping what's next for blackberry is that they could seek a partnership to better develop their handset because it doesn't basically let users email people outside of the network. it is too circumscribed right? you can only email each other and text each other in the blackberry network. they could develop that. other thing they could hook up with another big-name company to develop its government security, basically.
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its, users there. the data security is the gold standard. ashley: yeah. >> blackberry is known for having one of the best security networks in the world. so they have got, again, the governments overseas like that. the united states like it. they just sign ad big contract or won authority at the defense department where the pentagon has given it approved status for blackberry usage in the pentagon. the problem is cash burn is really going south very badly for blackberry. they're losing a lot of money and losing subscribers. the likelihood of getting a leveraged buyout where they get financing from wall street is increasingly dim. tracy: two things. i finally got to play with the z 10. a friend of ours had it. it is a cool phone. let me ask you this. you reported how android phones are getting hack ad lot. >> right. tracy: does the story like that put a little cachet into the blackberry? >> that's a great point. it could. the fbi looks a blackberry because of its security. they don't want to hear about security. ashley: yeah.
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>> the word on street is blackberry has to move fast. ashley: because they're losing subscribers. that is the bottom line. >> governments will say uh-oh, wait a second. blackberry laid off 5000 workers in effort to cut costs when they introduced the blackberry model with the touch-screen. that missed estimates by one million. the fact the layoffs didn't even help it and launch of the new touch-screen didn't help it either, not good for blackberry. but they have valuable assets in the company that could still sell itself and get a good deal. tracy: you know what the problem is? >> 2.5. tracy: kids will never carry blackberries. sound like old man phone. ashley: on commuter train, everyone has blackberrys. >> open it up where you could text and email to iphones, maybe. ashley: they should have worked that out before now. that's the problem. >> interesting. tracy: they have to make it cool for the kids. >> sure. tracy: lizzie mack. always cool with the kids. ashley: always cool with
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everyone. another troubled company, jcpenney holding a weekend board meeting over its fight with bill ackman. we'll have new details on this story ahead. tracy: it is not quiie to beam me up, scotty. it is pretty close. tesla founder elon musk wants to transform human transport. that is ahead. as we head out to the break the dow is down 29 points. oil is basically flat today, $105.83 a barrel. we'll be right back. you make a great team.
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tracy: that time of day where we make some money. charles payne is here this hour he has a stock pick in the trucking industry, arkansas best. >> arkansas's best. what is interesting about this, the company in the last fourth quarters, missed every time. tracy: that is interesting. >> it is about 30 cents from a 52-week high. one of the big deals that they just had a big contract with the teamsters ratified. real big deal in fact. this is in june. all the other supplemental ratifications should happen real soon. that will give them five years. some areas they were hurting on costs this will almost automatically help them out. in the meantime even though they
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missed operating margins are starting to move up. areas outside of general trucking, preeium, logistics, broker business, emergency business, household moving business, mostly military business all doing much, much better. the stock ironically missed that many times. the street for next fiscal year looking for $1.47. three months ago, the consensus was 82 cents. almost doubled. ashley: can you get in at this price at 23. >> absolutely. like to see it close above 25. you can see that is long-term chart. that is perfect. ashley: five-year. >> is seriee of long term highs. long-term trend and stock can probably go up to $33. i really love the way it is acting. they have some pricing power. all the other trucking metrics, like ton days and tonnage and billing days, all the shipments all that of that stuff is looking pretty good. tracy: is this a tell on the economy? >> i think more of a valuation
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thing. to tell we won't be in a double-dip recession. i think this is more about truckers having been sithit so hard, coming back. what i notice, any industry that deals with the teamsters, whenever you get a deal those stocks do them very well. when they can't you call them hostess. tracy: there's that. charles payne, thank you very much. ashley: quarter past the hour. time to check on these markets. adam shapiro on the floor of the new york stock exchange. adam. >> ashley, we're essentially flat across the board. the dow is down but only off what, .2 of a percent today. nasdaq is up but only up, not even a full .2 of a percent and s&p is down barely .2 after percent. so let's call it flat. who is not flat today? let's talk about pretty big onessed. linked in. who doesn't like krispy kreme donuts, melt in your mouth? hit a 52-week high, 22.97 for
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the stock. linkedin, since ipo doing very well. don't you wish you bought in is it up over 100%. look at five year on krispy kreme. who wants a stock when you get that and cup of coffee. pretty dramatic increase over last five years. back to you. ashley: a lot of doughnuts for that. adam thank you so much. tracy: so much for the carb craze. coming up expectations rising for a sent taper. deutsche bank's carl riggadonis will tell us what it is likely to look like. ashley: here is how the u.s. dollar is looking. finally get a correlation between the strong dollar and markets moving down. all the them moving lower. u.k. pound still fairly weighty though at 1.54. we'll be right back. with the spark miles card from capital one,
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>> at 20 minutes past the hour i'm lauren green with your fox news minute. breaking news from boston. the jury in raketeering trial of james whitty bulger found him guilty of multiple crimes including 11 killings. they reached the verdict after 30 hours of deliberations over five days. he faces life in prison. new york mayor michael
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bloomberg said he would appeal a federal judge's ruling that the new york city's police department's "stop-and-frisk" crime fighting tactics violate civil rights. the judge said they deliberately violated tens of thousand of new yorkers. the ruling came after four men who said they were targeted because of their race. a florida resort colaps because after sinkhole. this resort is 10 minutes west of disney world. officials say another section of the resort is also sinking. those are the headlines on the fox business network. back to ashley and tracy. tracy: that is not very good. thank you very much. the july budget deficit came in $98 billion. it is running 38% lear for the last year's levels. for the full year the deficit is running $607 billion. that is 40% bigger than last year. highlighting a looming budget
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battle when summer congress returns from the summer recess. if passed it would be the first since 2009. there i will will be balloons and cake and candy if this happens. will these negotiations be plagued by the overhang of yet another debt ceiling extension? our next guest doesn't seem to think so. joining us carl riccodinis senior economist at deutsche bank. i'm being slightly flip but the odds for this to be happening are slim to none, aren't they? >> certainly the budget news is encouraging and we're moving in the right direction. recall we had four years of trillion dollar plus budget deficits. finally this year it is looking closer to about 600 billion. i think we'll actually beat those estimates and be even a little bit lower, closer to 5,870,000,000,000. we're moving in the right direction but still when direction. when congress comes from recess there will be a lot of bickering, and i'm not confident we'll pass a comprehensive budget and not go back to the stopgap measures that we've seen
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in the past several years. tracy: right, basically kick the can down the road. >> exactly. tracy: talk about the deficit a little bit because it is all because of basically higher taxes and cuts in defense spending. is that good? is that a good way to get this economy going again, cutting defense and raising taxes on people? >> well, it is about half defense and half non-defense spending in terms of the sequester-related cuts. and on the other side, we have stronger revenue growth as well. part of that is higher tax rates from the start of this year. and part of it is purely the reflection of a stronger economy. so it's a little bad and a little good but certainly the deficit news is good news. tracy: yeah. okay. so now, to your point earlier, they come back, there will be a lot of bickering. october 1 is the new fiscal year ends. not enough time to get this done. why do we do this every year? why do we get to the deja vu all over again point? not enough time and we got to kick it down the road. >> i will ask you the question,
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why ask why? tracy: you're right. end it right here. >> exactly. the level of discord in congress explains why we're getting to, every time, it's, very last minute, when compromise is reached. and think we'll see the same thing this time around. i don't think we get a big, comprehensive seven plan for the budget. we get maybe an operating budget and short-term stopgap funding measures. that is the best we can hope for. we'll be able to avoided a government shutdown. a little bit, after they pass the new budget they will also have to deal with the debt ceiling again. but again all of these things aren't falling on the same exact date like we saw with the fiscal cliff. so it should be a smoother road to compromise ultimately in this round. mind you, we've been through this three times before. it always looked catastrophic and we managed to muddle through. i'm confident that yet once -@again we will manage to reachn agreement. tracy: yeah. well that's comforting. no august 2011 repeat, right? >> absolutely. tracy: let's talk about
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something we teased earlier. you say the fed is too far in this to back out on tapering now. is it because to your point earlier the economy is getting better? well, you can only say no for so long? >> certainly last week from even the more dovish-leaning policymakers the ones who were most likely to keep this asset purchase program in place, even some of those folks last week said, well, q3 is a possibility, maybe even at the september meeting. the economy is humming along at a decent clip. q2 is likely to be revised up when those numbers are released at end of the month and, job creation is holding in right around 175, 200,000 per month. the quantitative easing, or the really a crisis-era policy tool the economy, while not great, certainly is no longer in crisis anymore. so it's time to begin step being back on that program, not cold turkey, but, i think by the time, we get to sent, we'll have
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one more employment report to look at, we'll see that really we are justified, beginning to reduce those purchases. then maybe each meeting after that through the end of the year they will reduce them a little further. tracy: yeah. in too far to back down now. carl, always great to talk to you, sir. >> thank you, good afternoon, all right. pilots for island's low-cost airline, ryanair, are raising questions whether the airline is actually safe. the unofficial ryanair pilot's group. they surveyed one thousand of its pilots and found 94% want regulate, to conduct an inquiry into the impact of employment practices on safety. 89% said they didn't think the carrier has a transparent safety culture. ryanair declined to come men but said in its annual report hasn't had any passenger or crews or fatalities in its 29 years of service. not much comfort when you have the pilots worrying about safety, but --
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tracy: right. ashley: ryanair is about as budget as you come. michael o'leary called for people to pay when they go to the bathroom. they are cheap, no doubt about it. but there you go. pilots are a little concerned. tracy: don't make me feel about it, for sure. coming up this might be a safer way to travel, space travel here on earth. one company is working to revolutionize transportation live in a fox business exclusive, next. ashley: plus jcpenney's battle with bill ackman, starting to get ugly. while the board might be taking legal action. first as we head to the break, take a look at some winners and losers. the dow moving down. s&p is somewhat flat on the day but we have some winners. we'll be right back. i've been doing a few things for a while that i really love-- tdd#: 1-800-345-2550
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♪ >> 90 minutes until close. look at the dow 30 now, more red than green on the screen, but we have big companies, caterpillar, microsoft, ibm on top. talking about home depot later in the show. it's flat right now. it was just up, and adam, though, down on the floor of the new york stock exchange, what's going on, adam? >> you like chocolate cake, maybe log cabin syrup? they are doing gang busters, buying wishbone salad dressing, and today, the stock is up at a new 522-week high, $26.94 a share. good luck with them buying wishbone. my father used to eat green goddess dressing. i don't know if they still make it. who doesn't like dole. dole's ceo is taking the company private, is 1.2 billion deal, upped the bid, offered $13.50 a share, trading higher today, and
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not hitting a 52-week high, but good news for investors is the price is going up. tracy? tracy: lots of action in the food sector today, adam. >> we love food. tracy: always. ashley: i'm starving, by the way. forget flying car, tesla ceo is unvailing the designs what could be the real transportation of the future this afternoon. it's intriguing, this. jo is in loveland, colorado with a look at the technology. jo? >> that's right, ashley. it's very exciting technology, but first, elon musk was scheduled to unvail the loop, the high speed capsule travel earlier, but it's delayed to 4:30 eastern time. look for that on twitter. meanwhile, we're here at ability composite with the owner. thanks so much for joining us. we're in front of a structure that could pretty much take a capsule and launch us straight
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to china, essentially. tell us -- >> well, this is an auto clave we use, it's really a ressure cooker used to consolidate the lamb innocent, but it's similar in size. it has the readings, and the capsule is loaded in a structure similar to this, it's evacuated, and then it would get on the system and go down. >> now, you guys coordinate with et3, a leading developer of the technology talked about, and you could create the capsule out of this fiberglass string? >> right, right. this is a fiberglass toll, it's very, very strong, almost five times stronger than steel perhaps, and it's nonconductive, and so that's one of the things they need because of the electronics of the elevated passageway, really cannot have a structure that has -- is conductive. >> it actually would, that
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capsule would have this feet in it, and it transports human beings with no sense of real high speed pressure, and you can travel 15 minutes from new york to boston, impressive technology. next up, we'll have an exclusive with the et3 founder and ceo coming up in the next hour. that's a fox business exclusive. we'll bring you all that and show you how the capsule works, cool stuff. ashley: very cool. very james bond like. i think he had a capsule if i remember, but new york to boston in 15 minutes? wow. tracy: how about new jersey to new york somehow? no more local traffic. ashley: get in the pod. tracy: would be awesome. ashley: the drive-t through banks, love that. great stuff. tracy: i'll never miss a morning meeting again. the battle between struggling retailer, jcpenney and bill
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akman heating up so there was a conference yesterday to discuss taking action. a leaked confidential board room document last week, gerri willis is here now. it's soap oprah city. >> no, he did this; he did that. akman is accused of leaking confidential board minutes having conversations what the heck to do with the mess we call jcpenney, and the biggest investor at 18% in the company says he wants to bring in someone called al lan, a real turn around artist in the retail industry to run the company. you know, jcpenney has been languishing for a long time, ron johnson, the latest ceo to lose his job, coming from apple, a fellow who design the apple stores, saying, hey, it's natural he can fix jcpenney stores. not natural. he lost his job, and now they
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call ackman rogue. ashley: has he done anything illegal? >> no. ashley: he has a right to do it, maybe not smart, but -- >> smart like a fox, are you kidding me? ashley: this is to unsettle people who do business with jcpenney. >> they are unsettled. if you are holding shares right now, you are thinking about the future of the company, where is it going? what's it on track to do? the questions are open. let me tell you -- ashley: what abouttthe suppliers? >> better question, actually. there's an 18-month window; right? ashley: right. >> shipping to them, good for the credit, ect., ect. tracy: some extended the windows, but you can understand where they are coming from. look, hire the guy that redid apple stores, i mean, we're talking about apples and oranges, no pun intended, phones and shorts.
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>> i see that, but people in the retail industry don't make the distinctions. i agree with you. tonight, you know, if you want to hear something other than the jcpenney story, tonight, we're talking about the outrage over congress not having to play by the same rules of the rest of us with obamacare. new polls out there, people are upset about this, and we'll have douglas holtz-eakin on tonight to talk about it. you know, he's one of the brightest people on the topic of obamacare, knows it inside and out. join us at six. tracy: we will. six and nine p.m. eastern here, geirr, thank you very much. ashley: i was looking for, like, a men's wallet, and it happened to be there in a mall in connecticut, playing music from the 1970s, just felt very old. i go into macy's, upbeat. tracy: i'm with you. all about the tunes. ashley: it helps, puts you on a good mood. on deck, criminal charges coming in the london wale case, former
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senator says that's not enough. he'll be here next. tracy: look at the 10- and 30-year treasuries. we'll be right back. ♪ right now, 7 years of music is being streamed. a quarter million tweeters are tweeting. and 900 million dollars are changing hands online. that's why hp built a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. this&is gonna be big. hp moonshot. it's time to build a better enterprise. together.
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u this man is about to be the miionth customer. would you mind if i go ahead of you? instead we had someone go ahead of him and win fiy thousand dollars. congratulations you are our one millionth customer. nobody likes to miss out. that's why ally treats all their customers the same. whether you're the first or the millionth. if your bank doesn't think you're special anymore, you need an ally. ally bank. your money needs an ally. ♪ lori: this is your fox business brief. steinway musical instruments in a bidding war. the piano maker says a new
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unnamed investment firm offered to pay $477 million or $38 a share so that woulddtop the $35 a share bid from private equity firm. meantime, japan's economy, we learned today, grew at a slower than expected 2.6% rate in the second quarter, and so that marks the third straight quarter of expansion, but it is well below both 3.6% growth forecasts and the downward revised 3.8% rate from the first quarter. the 288 survivors of the sagesa airline flight that crashed in stris last month will each receive $10,000 from the airline, but they can still sue if they accept the payment. that's the latest from the fox business network giving you the power to prosper. ♪
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♪ ashley: federal prosecutors moving closer to filing criminal
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charges against jpmorgan employees over the role in the london wale trading debacle, this according to reports, but joining us now is the former delaware senator, kaufman, a vocal critic on the culture of wall street. thank you for joining us. we don't have many details on j pmorgan, but like goldman sachs, it seems to be going for the mid-level guy is paying lip service, what do you think? >> well, i think that's a real problem. now, i'm glad they are bringing criminal charges. we have not had that for years, criminal charges are good, but like on the fabulous fab case, the jury, after it was over, they said he thought he was just a mid level guy, and that the real problem was the wall street culture within goldman sachs that was crowsive, and that he was just a victim of it, and that's the thing you see time and time again. i mean, jpmorgan chase settled, i don't know, in the process of settling or trying to settle six
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or seven cases. no one in the management of the company has ever been brought forward by the fcc or the justice department. ashley: why do you think that is? why in the wake of what we know happened in the financial collapse, why do we hear almost on a weekly basis banks agreeing to pay a fine, but admitting no wrong doing or liability? why cannot someone be held accountable? >> yeah, well, i think what went on in the end of the bush administration, there was a la -- la someday fair approach, and the banks came out, and bailed out by the fed and the t.a.r.p. program saying, well, you know, it was not us, there's no problem here. i think what happened was the justice department and fcc, especially just fell in the old pattern. they had not brought wrong doing cases for a long time. that's making smore if they have a settlement, the person has to
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say that they engaged in wrong doing. if you're picked up for robbing a car or store, you can't get a settlement saying aisle settle, not add milt to wrong doing. what that does, ashley, is creates what is really corrosive to our society. i really mean corrosive, and that is people begin to believe there's two levels of justice in the country. one for people that have the money and the wherewithall, and other for the middle class and rest of us. that is a very bad thing. in addition, it's bad because we know for a fact that one of the places where deterrent works for criminal activity is with white collar crime. white collar crime can be discouraged if there's a real deterrent, they go to jail, and so far, no one's gone to jail in the whole thing. you have to be worried that the people who are doing what they were doing that got us into the mess are continuing to do it, not worrieded about the fact if they are caught, they go to jail. ashley: more than a thousand
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people were convicted after the much smaller savings and loans scandal of the 1980s. >> right. ashley: it's not that we have not done it before. >> right, no, the big difference there is, again, as i said in the end of the bush administration, there was a regulatory laissez faire approach, and we have so much regulation, too much regulation, but the regulators didn't do much of a job from 2005 on. the reason there were so many people put in jail, one of the biggest reasons is there was criminal referrals from the regulatory agencies. the regulatory agencies were on top of what they were doing, saw what was going on, the bank regulators, and the rest of them, and they sent over to the justice department a case on how to do a criminal case. on the thrift supervision, whatever, there was no referrals, none, zero. that's part of the problem. the other part of the program is we transferred prosecutors out of financial fraud after 9/11, the right thing to do, we needed
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to go after terrorism, but what happened was they were not back filled. we didn't have the prosecutors, the fbi didn't do the investigation when the financial crisis hit, and third is, clearly coming from the justice department was the announcement by holder they were concerned that if, in fact, they went into criminal charge against the corporation, that the corporation would, in fact, have a financial crisis, which k frankly, is without precedent. brewer, who was the head of the criminal division, first brought this forward, he testified at two hearings i chaired at the senate judiciary committee, meeting with him several times otherwise, and never once mentioned this as a concern for why they were not moving forward. ashley: interesting stuff. senator kaufman, thank you so much for joining us, appreciate it. >> thank you for having me, ashley. ashley: thank you. tracy: quarter tim, time for stocks, and adam is on the floor of the new york stock exchange. what do you have, adam? >> dow is down, s&p down, nasdaq up. i want to talk to you about one of payne's pick.
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cliff natural resources, doing well, in positive territory, up 1% today, pulled back, up much stronger earlier this morning. still doing well, but charles may want to watch it. he warned people too saying he got into it, but it's risky. caterpillar up 2% today. the group is up, actually, when you consider the heavy earth moving machines, but caterpillar up 2% there, positive territory, the winner on the dow. the loser on the dow right now? disney. you know, my mom loved "the lone ranger," the one person who loves the movie, and everyone else, disney down today. ashley: had to be one on there. tracy: hope your mom's not watching. >> she is, actually. tracy: oh, mom, i'm sorry. maybe she had good popcorn. >> she grew up in the era of the lone ranger, and you'd love the movie then because it's an inside joke. tracy: thank your mom. ashley: found someone who lovedded it. tracy: thanks his mom, that's
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for sure. ashley: home depot shares rising to a 52-week high. we have an alternative play. that's next. tracy: first, some of today's winners and losers heading to break. dow trying to crawl back, down 20 points right now. here's the winners on the nasdaq and five networks, talking about this earlier, and apple up. could there be a new phone? who knows. we'll be right back. ♪ with the spark cash card
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fray tray shares of the home depot riding high, but is it a good investment? the next investor has a great alternative.
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joining us now, jack hao, senior editor at barrens. a lot of people paying attention to what you write. are we really in a housing recovery, or it's just clawing back? >> way off the lows, good, you know, growth in prices and, you know, starts up, so we are in a recovery. i don't think we'll go back to the long term, like, gang busters increases in house prices. that's not a normal situation, but we're off the floor, getting gradually better. tracy: okay, that being said, home depot on a tear, people fixing homes up, is it too pricey here? >> i do. it's already 19 times -- not this year's earnings, but next year. that's an missing pating a lot of growth. tracy: you have an alternative? >> look at hd supply. this is actually -- used to be part of home depot, about a decade leading up to the housing bubble was there is an
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acquisition spree where home depot bought into wholesale businesses to expand the business, but got back to retail selling wholesale to private equity, and private equity brought it brick again this year so the company is called hd supply. now, it's tied to commercial building, so some of the business' is tied to residential, already benefiting from the recovery there, but you tend to get a commercial recovery a year to 18 months after you get a residential recovery. you create new towns and new towns want stores and buildings and things like that. this is a stock that's 12 times earnings. just much cheaper. you got potential for great sales growth, you're at an earlier stage of the recovery here, and there's a lot of debt to the company, but the free cash looks good going forward, and that pays down. tracy: i like the story, but it's up 26% since the end of june. it's been moving. >> it's moving, but home depot is up from a low of 20 bucks in the bust to 80 bucks now. tracy: room to go?
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>> i do. the ceo is ready when he says, home depot is in the early earnings of recovery, but just starting recovering right now. tracy: i like papa johns, dominoes because, to me, it's a sign of the consumer; right? you say the guys have -- they run as well, but maybe at this point, take your dough and go? >> i think you should. they did a couple things well, they are opening stores overseas, but they figured out how to get the internet to work to order pizza staking shares from the mom and pop pizza joints, but you pay 23 to 25 times earnings now. it's expensive. they are coming up against more difficult comparisons. there was good sales growth until now. the growth is set to slow next year. i think that combination, slowing growth and really expensive price tag on the stocks, says it's time to take profits. tracy: they are not done? >> not done growing. >> tracy: take money off the table? >> i think so, yeah.
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tracy: jcpenney, how do you feel? >> stay far from the stock. who is still bying jcpenney? you know, this -- i'm not sure where the store stands in the hierarchy of things, you go to macy'ss otherwise it's a specialty store, let's say gap because you want gap merchandise or deep discounts, you go to an off price retailer. jcpenney sells many brands that are not exclusive to the store that you can buy many other places. right now, i just don't see a place for jcpenney going forward. barrens is bearish for a long time now. tracy: right, even if it turns around, you can argue you cannot get in any lower. >> no signs of the turn around, it's cheap, but no turn around, you need a marginal recovery of immense proportions to get back in the clear. tracy: a lot not happy. >> don't hold out for a christmas miracle for this one. tracy: love having you on. >> thank you. ashley: 1970s music.
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that's all i'm going to say. talk about a diamond in the rough, a 12-year-old boy from north carolina found a 5.1 # 6karot diamond while on vacation. the arkansas crater of diamonds state park lived up to the name and searching for only 10 minutes finding a honey brown diamond, the size of the jelly bean, the 27th largest one found since it became a state park in 1972, and lucky for him, the park's policy is finders' keepers, and, by the way, it could be worth up to $15,000. not a bad find. tracy: that's a fun family trip. ashley: next family vacation. tracy: i'll tell the kids. coming up, sac capital closes one of the story trading units. the latest on the insider trading case at sac, and one fund manager sticking with the embattled hedge fund, at least for now. dow down 19 points. don't go anywhere.
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♪ >> what could be one of the most futuristic announcements you heard since the supercollider. new line musk want to supercharge the way we travel. think jetsons, only incited tube called the hyper loop. the ceo on the company on the cutting edge of this revolutionary technology. blackberry on the block? former king of mobile considers putting itself up for sale for a strategic partnership. whether you should be an investor now. and a london whale of a problem, the fed are close to now filing trading scandals and criminal charges against two former jpmorgan employees. "countdown to the closing bell" starts right now.
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